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Question 84

A 200 dollar item rises in price by 30%, then falls by 30%. What is the overall percentage change from the starting price?

  1. No change
  2. 9% increase
  3. 60% decrease
  4. 9% decreaseCorrect answer

Explanation

The price becomes 200 × 1.30 × 0.70 = 182, which is 18 below 200 and therefore a 9% decrease. Calling it no change adds opposite rates even though the decrease uses the larger intermediate price.

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Question 84: A 200 dollar item rises in price by 30%, then falls by 30%.… · Percentages · Questena